Short Summary

Against the background of a world phosphate shortage, the Togolese government has taken over the multi-national Benin mining company, whose phosphate mines produce one of the country's most important exports.

Description

Against the background of a world phosphate shortage, the Togolese government has taken over the multi-national Benin mining company, whose phosphate mines produce one of the country's most important exports. It was announced on February the 4th that the state, which already had a fifty one per cent stake in the company, would take over all its assets.

The rich vein of phosphate ore is situated about 30 kilometres (18 miles) from the coast. The ore, which yields approximately 80 per cent phosphate, is transported to the coast for processing. Over one and a half million tons are exported annually and, along with cocoa, comprise the main source of foreign earnings.

The government has been steadily increasing its stake in the company which was originally owned by French, Japanese, United States and Togolese concerns. Last month the Government unilaterally raised its stake from 35 to 51 per cent. Togolese Head of State, General Etienne Eyadema, said the mining company tried to kill him in an aircraft crash as a result of that decision and that he was ordering a complete take-over in retaliation.